Micro Thesis - Distribution Growth
We invest in partnerships whose fundamentals will be an impetus for future distribution growth. Growth in distributions is a hedge against inflation - it preserves the purchasing power of our investment over the long-term. Strong growth also often results in underlying capital appreciation.
Total returns are estimated by adding current yield and distribution growth rates. The Yorkville MLP Universe currently has a yield of 10.2% and year-over-year distribution growth of -1.7% for an implied forward total return of 8.5%.